Possible hike in LTC bus fares to offset financial strain
Work will soon begin on the London Transit Commission’s 2024-2027 budget submission to city hall.
A new report to transit commissioners provides a high-level outlook on the financial challenges facing the bus system and suggests strategies to balance upcoming budgets including an increase to bus fares.
The budget submission to city hall will be divided into two parts — a base budget for maintaining the status quo and a growth budget for service enhancements.
Budget pressures impacting the base budget include:
- diesel fuel pricing 45 per cent higher than projected in current multi-year budget
- general insurance costs increased 48 per cent during current multi-year budget
- hourly cost of paratransit has increased 27 per cent
- bus/ancillary equipment pricing has increased 37 per cent
Meanwhile, revenue generated from ridership hasn’t fully recovered from the COVID-19 pandemic.
“The 2023 conventional transit service operating budget includes a shortfall of $6.5 million resulting from a combination of decreased passenger revenues, increased expenditures and the desire to maintain the City of London funding at the original multi-year budget submission for 2023,” explained the report.
Earlier this year, city council set the target for the average annual tax increase in the upcoming 2024-2027 municipal budget between 2.9 per cent and 3.9 per cent, plus an additional 0.5 per cent for growth investments.
That target leaves the London Transit Commission with little financial wiggle room.
“A cursory review of the aforementioned issues indicates that the base budget increases for the conventional transit service in the next multi-year budget submission are likely to exceed the City of London targets,” admitted LTC administration in the report.
“The balance of the budget that is not funded by transportation/operation revenues will be shared between fare increases and increases to City of London investment,” the report recommended.
It also notes that fare increases must be undertaken in a manner that do not result in ridership loss.
As he waits at a bus stop, Ian Soares told CTV News he’s worried about how a fare increase would impact Londoners on fixed incomes, “I make a decent amount of money for myself, but I know that a lot of people don’t.”
“I would prefer to pay more if it means that I have better service,” said Dina Koishima before boarding her bus.
London transit has planned thousands of hours of service improvements in the coming years, but budget limitations may force the plan to be scaled back.
Outstanding service improvements from the current five-year service plan, as well as those that have been identified subsequent to the plan’s approval, total 323,800 hours.
They include improving the frequency on routes connecting to Rapid Transit, expanding service to industrial parks, extending routes to new neighbourhoods and longer hours of operation.
However, LTC administration has now recommend cost estimates be provided for the addition of just 22,000 and 24,000 hours each year for the commissioners’ consideration, “these scenarios would provide the ability to address between 2 per cent and 30 per cent of the outstanding service improvements over the four year period and result in a service increase of approximately three per cent annually.”
“I wouldn’t mind paying extra for bus fare because I work downtown,” said Tyler Childerhose as he waits for his bus, “I know how much parking is downtown and the increasing gas prices.”
The London Transit Commission will provide high level budget direction to administration at a meeting May 30, and receive the draft budget submission in August.
CTVNews.ca Top Stories
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
LeBlanc says he plans to run in next election, under Trudeau's leadership
Cabinet minister Dominic LeBlanc says he plans to run in the next election as a candidate under Prime Minister Justin Trudeau's leadership, amid questions about his rumoured interest in succeeding his longtime friend for the top job.
Grandparent scam suspects had ties to Italian organized crime, Ontario police allege
A group of suspects that allegedly defrauded seniors across Ontario and other parts of Canada using a so-called emergency grandparent scam appear to have ties to 'Italian traditional organized crime,' according to an investigator involved in the OPP-led probe.
Sports columnist apologizes for ‘oafish’ comments directed at Caitlin Clark. The controversy isn’t over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball’s highest scorer Caitlin Clark’s first news conference as an Indiana Fever player.
Trend Line Anger, pessimism towards federal government reach six-year high: Nanos survey
Most Canadians in March reported feeling angry or pessimistic towards the federal government than at any point in the last six years, according to a survey by Nanos Research.
BREAKING B.C.'s short-term rental regulations include $10K daily penalties for Airbnb, other platforms
Short-term rental platforms that violate B.C.'s pending regulations can face administrative penalties of up to $10,000 per day, officials announced Thursday.
Taylor Swift's new album allegedly 'leaked' on social media and it's causing a frenzy
A Google Drive link allegedly containing 17 tracks that are purportedly from Swift's eagerly awaited "The Tortured Poets Department" album has been making the rounds on the internet in the past day and people are equal parts mad, sad and happy about it.
Motion to allow keffiyehs at Ontario legislature fails
A motion to reverse a ban on the keffiyeh within Queen’s Park failed to receive unanimous consent Thursday just moments after Ontario Premier Doug Ford reiterated his view that prohibiting the garment in the House is divisive.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.